Solana’s Bearish Correction: 4.8% Drop to $131 as $150 Resistance Lingers

At the time of writing, Solana (SOL) is trading just above $131, reflecting a decline of over 4.8% in the past 24 hours. Despite a recent technical rebound, the network struggles with persistent resistance at $150 and declining on-chain activity, even as institutional interest and innovative projects continue to fuel optimism.

• Solana is trading just above $131, down over 4.8% in the past 24 hours.

• The $150 level remains a key barrier that could dictate near-term price direction.

• Prospects of a Solana ETF and expanded tokenized assets may attract significant institutional capital.

• Falling dApp revenues and lower chain fees signal reduced network usage amidst fierce competition.

• Projects like PumpSwap illustrate Solana’s ongoing efforts to innovate and capture value in the DeFi market. 

Solana’s native token is currently trading slightly above $131, marking a notable 4.8% drop over the last 24 hours. Previously, SOL had rallied by 14% from a key support level of $121, briefly touching $147 before encountering firm resistance at $150. 

SOL/USDT price chart | Source: KuCoin

Analysts suggest that a breakthrough above this critical threshold could open the door for a rally toward the $180 resistance level; however, the recent bearish correction underscores the market’s volatility.

Spot Solana ETF approval odds on Polymarket | Source: Polymarket

There remains optimism among market participants regarding Solana’s long-term prospects. Expectations of a Solana spot ETF approval in the United States, alongside the growth of tokenized real-world assets on the network, continue to attract institutional capital. 

Social sentiment has been notably positive, buoyed by an 18:1 positive-to-negative comment ratio, which supports the view that renewed institutional backing could eventually offset short-term technical setbacks. Polymarket polls indicate an 84% likelihood that the US could approve a spot Solana ETF this year. 

Despite encouraging signs from institutional channels, Solana’s on-chain metrics have been less favorable recently. DApp revenues have declined significantly—from $23.7 million to $12 million over a short period—and base layer fees have nearly halved. These declines come at a time when competing blockchains such as Ethereum and BNB Chain are intensifying their market presence, contributing to the ongoing struggle for SOL to reclaim its former trading heights.

PumpSwap becomes second-largest Solana AMM | Source: Dune Analytics

Innovation within the Solana ecosystem remains a bright spot. The recent launch of PumpSwap, an automated market maker (AMM), has positioned it as the second-largest AMM by volume on the network, after Raydium. This development reinforces Solana’s commitment to enhancing user experience and expanding DeFi offerings, even as short-term price action remains volatile. Such innovations underscore the network’s potential to create a more integrated and user-friendly decentralized finance landscape.

Read more: Pump.fun Debuts PumpSwap DEX with 0.25% Fee Structure and Zero SOL Migration Fee to Reclaim Solana’s Memecoin Market

In summary, while Solana faces a short-term bearish correction and mounting competitive challenges, the network's strong fundamentals, institutional interest, and commitment to innovation continue to offer a cautiously optimistic outlook for future growth. Investors will be closely monitoring whether SOL can overcome its resistance levels and sustain a rebound in the coming weeks.

Read more: How to Use the Raydium (RAY) Decentralized Exchange on Solana: A Beginner’s Guide